Forest products industry

Urge to merge remains high in wood industry

Article Abstract:

Several companies in the wood products industry appear ready to merge their operations or divest business units. For example, Tembec Inc wants to purchase Malette Inc for C$300 million. Other companies that will or plan to merge operations include Sierra Pacific Industries, West Fraser Timber Co and Alliance Forest Products. Wood products companies wanting to divest units include Weldwood of Canada and Georgia-Pacific Corp.

New company forms through mill purchases

Article Abstract:

Several mills in the Pacific Northwest are merging. Quality Veneer acquired Mayr Bros., Hanel Lumber Co., Omak Wood Products and Young and Morgan Lumber Inc. for over $50 million. Domtar acquired E.B. Eddy Paper Ltd. for $803 million Canadian. These mills are quite old and some had financial difficulties.